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Calculate the irr for this project post data

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A company wants to analyze this investment: initial investment of $80.000.000, $30.000 of income in the first year then 10% increase over previous year's revenue for 5 years, residual value of $20.000 and opportunity rate of 6%.

a) Is it feasible to carry out the investment? Why?

b) if the company only accepts investments that generate a return of 5% above the cost of the investment. Should we accept this project?

c. What would the initial deposit be if you expect a 50% return

d. Calculate the IRR for this project Post data: the residual value is added to the net cash flow of the last year, this being the numerator of the last term

Reference no: EM132816008

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